Q-Factor Score Stock Ranking

Each month our Quantamize proprietary multi-factor models score and rank over 10,000 stocks from 30 countries. A Q-Factor rating is assigned to each stock ranging from A to F. These Q-Factor ratings represent our models’ expectation for performance for the month.

  • We apply multi-factor models systematically to regions, countries and sectors (within the US) to derive our Q-Factor ratings
  • Models consider every equity market as unique and apply customized models for each region, country and sector
  • Models are broken into 3 groups: quality/value, momentum/volatility and growth
  • Where appropiate we may choose not to use a particular factor group.

The components of each factor group are reviewed independently before being evaluated in the context of other factor groups. An A rating for a factor group means a particular stock is very cheap in the context of that factor group. A score of F means it’s very expensive in the context of that factor group.

                   

A

 A rated stocks are those stocks our quantitative multi-factor models score as most probable to rise in price compared with their broader universe for the month. These stocks are the best “BUY” options for investors.
 
 
 

CONVICTION BUY

 

 

B

 B rated stocks are those stocks our quantitative multi-factor models score as moderately probable to rise in price compared with their broader universe for the month. While these stocks are ranked ATTRACTIVE, we believe the best options for long positions are A rated stocks, CONVICTION BUYS.
 
 
 

ATTRACTIVE

 
 

C

C rated stocks are those stocks our quantitative multi-factor models score as probable to have negligible return for the month. NEUTRAL stocks are best used for call-write strategies and butterfly spreads.
 

NEUTRAL

 
 

D

 D rated stocks are those stocks our quantitative multi-factor models score as moderately probable to fall in price compared with their broader universe for the month. While these stocks are ranked UNATTRACTIVE, we believe the best options for short positions are SHORTS, F rated stocks.
 
 
 

UNATTRACTIVE

 
 

F

 F rated stocks are those stocks our quantitative multi-factor models score as most probable to fall in price compared with their broader universe for the month. These stocks are the best “CONVICTION SHORT” options for investors.
 
 
 

CONVICTION SHORT